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Scots Renting Not Buying

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As real housing prices fall in Scotland, many homeowners and builders are turning to renting their property instead of selling. With the credit crunch and slowing economy hitting buyers hard, more and more owners are looking to get a return on their property by letting instead of having it sit vacant for months at a time.

According to The Scotsman newspaper, sales of houses across Scotland were down considerably in the first half of 2008. For some real estate agencies that meant a drop in sales by as much as 40% over last year and a dip in prices of as much as 15%. As a result in the downturn in sales, Clyde Properties let three directors leave the company and is looking to do more business letting properties. Whereas last year the firm had over 1,500 properties to let and managed, they currently have over 1,800 and expect to have over 2,000 by the end of 2008.

Other companies are turning to the rental market as well. Letting agent D J Alexander reports that it has been contacted by several residential builders and developers who want to let their flats as they can’t sell them right now. The increase letting is also driving up the average price of rents through a combination. With more people looking, owners are increasing the price of rents. At the same time, the increase in new and higher end homes on the market is also raising prices.

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